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The Honolulu Advertiser
Updated at 2:50 p.m., Tuesday, February 24, 2009

Opinion: DOE steers a better course toward accountability

The recent audit of some of the state Department of Education's procurement practices revealed troubling problems that call out for a new course toward internal checks and improved accountability. It's a path the DOE has encouragingly embraced.

The audit, which covered fiscal year 2006-07, uncovered disturbing lapses in oversight and control that resulted in an attitude of indifference toward following procurement rules. The report zeroed in on some "alarming" practices within the Office of School Facilities that appeared to be "fraudulent and unethical" and manipulated the procurement process. Some of the findings include:

• A high-ranking department official instructed a consultant to hire a sub-consultant with close ties to the department, in exchange for additional contract funding.

• Contract selection committee members in another case agreed via e-mail to change a prior selection decision, and instead award the contract to another, unranked vendor who had been improperly allowed to start work on the project; the committee then falsified the selection documents to cover its tracks.

• A $300,000 construction management contract was pre-determined to be awarded to an engineering firm where a former department assistant superintendent was employed in a high-ranking position. The process was then manipulated to create an "impression of a fair and competitive selection."

• Four management contracts totaling $20.9 million were issued to oversee and manage $160 million in school renovation funds. A consultant assisted the department while simultaneously competing for some of the work, and ultimately won a $2.4 million contract.

The report shows a glaring lack of accountability, and a system that reflected a culture of waste and disregard for taxpayers' dollars. Fixing that system should be a top priority — particularly where taxpayers' funds are concerned.

So far, DOE Superintendent of Schools Pat Hamamoto is on the right track. She has already sent some of the audit's findings to the state attorney general's office to determine if criminal charges are warranted; she's also started an internal investigation of her own. And steps, she said, are already being taken to bring procurement back under the superintendent's purview — a move that would enhance accountability and help ensure the safeguards and rules in place are properly followed.

"We want to get the work done and get it done in a timely manner. But I have the expectation that it will get done legally and ethically," said Hamamoto, who had requested the audit.

State Auditor Marion Higa said Hamamoto's decision to take back oversight over procurement is a good sign.

"I hope she has the appropriate support — support from the Board of Education and from those parts of the department that believe that rules are rules when you're talking about public money."

Exactly. When it comes safeguarding precious public dollars, following the rules is not optional — it's the law.